http://www.stepchangemarketing.com/ In this Slideshare presentation: 1. Understanding customers 2. Agenda 3. Necker cube 4. Necker Cube exercise 5.Necker Cube answer 6. Necker Cube answer 7. RTA 'Pinkie' campaign 8. Blank 9. Segmentation Checklist 10. Blank 11. Why bother? 12. If you get it right... 13. What's different 14. 1+1=11 15. Brain 16. Fusing functional and emotional benefits 17. Consumer work should only be helping us 18. Segmentation 19. Benefits of market segmentation 20. Targeting and spillage 21. Bullseye 22. Secondary 23. Demographics Old Skool 24. Adoption of innovation model 25. Some common segmentation 26. Methodologies and models 27. Beating the jargon 28. Research 29. Henry ford 30. Steve Jobs - Think different 31. Steve jobs 32. Research strategies 33. Modular questionnaire 34. Insights 35. Bill Bernbach 36. Discussing insights 37. But first ... 38. OK but why? 39. Insight vs. Innovation 40. Insight vs. Innovation 41. Deeper understanding 42. Relevant and persuasive message 43. Understand their needs 44. Insights gleaned 45. Further insights 46. Why are insights important 47. Definition of insights 48. Simply put 49. Appendix 50. Baby boomers 51. Generation X 52. Generation Y 53. Generation Net 54. Generation Net cont... 55. Generation C 56. Recognising your customers 57. Recognising your customers cont...

1. UNDERSTANDING CUSTOMERS
Customer Insights and Segmentation
Coraggio C2
9:30 - 12:30 Friday 12th Aug, 2011

2. AGENDA
9:30 - 9:50 Stimulation Keynote
9:50 - 11:00 Working session (Qualitative and Quantitative focus)
11:00 - 11:30 Break
11:30 - 12:30 Stump the Strategist session. Your chewiest marketing
challenge solved live in 9 minutes.
Link to me on LinkedIn (Ashton Bishop) and you can
download this presentation

3. NECKER CUBE
Can you make the ball move
from being in front of the cube,
to inside the cube?

4. NECKER CUBE
Can you make the ball move
from being in front of the cube,
to inside the cube?

5. NECKER CUBE
Can you make the ball move
from being in front of the cube,
to inside the cube?

6. NECKER CUBE
Can you make the ball move
from being in front of the cube,
to inside the cube?

7. RTA ‘PINKIE’ CAMPAIGN: AN INSIGHTS CASE STUDY
Source: (2009) “Roads and Traffic
Authority: Speeding. No one thinks big of
you”, 2009 Australian Effie Awards.

9. Segmenta
t ion Check
Be target
lis t
e d - media
money bo
Only as us x
eful as it
is usable
Don’t was
te money on
rese arch
Focus on
w hat make
s the differ
Segmenta ence
tion. Resea
rch. Insigh
ts

11. Why bother with all this brand
business anyway?

12. Why bother with all this brand
business anyway?
Because if you get it right
people will love you for it!

13. We’re hardwired to notice only what’s different

16. FUSING FUNCTIONAL AND EMOTIONAL BENEFITS
+ =
47 TV commercials that had an emotional benefit scored higher than
121 TV commercials with only a functional benefit

17. CONSUMER WORK SHOULD ONLY
BE HELPING US
Make sure we’re speaking to
the right people - quantitative
Talk to them in the right
way - qualitative

18. SEGMENTATION

19. KEY BENEFITS OF
MARKET SEGMENTATION
Focus marketing efforts where they
have the best chance of success
Build on the success of other
companies' products
Increase profitability through
increased customer loyalty and
higher prices
Increase the efficiency of money
spent for marketing activities
Find growth opportunities

20. TARGETING AND SPILLAGE
The ‘alienation’ test

21. TARGETING AND SPILLAGE
The ‘alienation’ test
A:
bullseye

22. TARGETING AND SPILLAGE
The ‘alienation’ test
A:
bullseye
B: secondary

23. DEMOGRAPHICS - OLD SKOOL
Baby Boomers Generation X
(1946-1960) (1961-1980)
Generation Y Generation Net
(1981-2001) (1995-...)
http://www.dhss.mo.gov/LPHA/New2008MCHI/GenerationalDifferences_Worksheet_GalenHoff.pdf

24. ADOPTION OF INNOVATION MODEL
Rogers Adoption Innovation Curve
find a nicer version

25. SOME COMMON SEGMENTATION
Methodologies and Models
Mosaic
Geo-tribes
Nielsen - Panorama
Roy Morgan segments - Asteroid

26. SOME COMMON SEGMENTATION
Methodologies and Models
emogr aphics Geo
g
D rap
es Age hy
tit ud ender So
At G cio
-ec
Edu on
s
ca om
ur
We tio
n ic
vio
Ca alth
ha
ree
Be
etc r
.
Mosaic
Geo-tribes
Nielsen - Panorama
Roy Morgan segments - Asteroid

27. BEATING THE JARGON
We’ll be looking at our
segmentation tool today

28. RESEARCH

29. “If I had asked people what they wanted, I
would’ve built a faster horse”
- Henry Ford

30. “You can’t just ask
customers what
they want and then
try to give that to
them. By the time
you get it built,
they’ll want
something new.”

31. “There’s an old Wayne Gretzky quote that I love. ‘I skate to
where the puck is going to be, not where it has been.” And
we’ve always tried to do that at Apple. Since the very, very
beginning. And we always will.”

32. RESEARCH STRATEGIES
Trends - experts, technological changes
Context
Culture - pop culture, style, fashion
Cross-Industry - influences from parallel
industries, developments etc.
Depth (insight) - Qualitative analysis - groups,
Consumer
interviews, observations, ethnography
Breadth (quantitative) - online, omnibus, Roy
Morgan data

33. MODULAR QUESTIONNAIRE
Research can be a
relationship builder
Always start with those
closest to your brand
Download from my
LinkedIn profile

34. INSIGHTS

35. “Most marketers use research like a
drunk uses a lamp post, for support
rather than illumination.”
- Bill Bernbach

36. DISCUSSING
INSIGHTS

37. DISCUSSING
INSIGHTS
but first, who’d like to see a picture of my testicles?

38. Yes, the unthinkable!
OK, but WHY do that?

39. INSIGHT VS. INFORMATION
Insights are a
perspective on Information is
information that means primarily data that
you will never look at the comes from
information the same observations
way again

40. INSIGHT VS INFORMATION

41. INSIGHT VS INFORMATION
Insights give a deeper understanding, getting you closer to the
result you are after. In marketing terms:

42. INSIGHT VS INFORMATION
Insights give a deeper understanding, getting you closer to the
result you are after. In marketing terms:
Usually...
to deliver the most relevant and
persuasive message to your customers

43. INSIGHT VS INFORMATION
Insights give a deeper understanding, getting you closer to the
result you are after. In marketing terms:
Usually...
to deliver the most relevant and
persuasive message to your customers
or simply...
to better understand their needs,
behaviours and motivations

44. INSIGHTS GLEANED?
You’ll probably never forget an insight:
• Remarkable examples
You know where my commitment lies:
• To powerfully educate vs. offend

45. INSIGHTS GLEANED?
You’ll probably never forget an insight:
• Remarkable examples
You know where my commitment lies:
• To powerfully educate vs. offend
A doctor would probably have gleaned a whole different level
of insight, which is an insight within itself

46. WHY ARE INSIGHTS
IMPORTANT?
Insights are fuel for thinking
E.g:
In the singles division of a knock-out tennis tournament there are 111
entrants. The organiser wants to calculate the minimum number of
matches that must be played. What is this number?

47. DEFINITION OF INSIGHTS
Total Matches
111
55
56
28
28
14
14
7
7
3
4
2
1
win

48. Simply...
There must be 110 eventual
losers and one winner.
Since each loser can only lose
one match there must be
110 matches.

49. APPENDIX

50. Baby Boomers Generation X
BABY BOOMERS Generation Y
Generation
Net
Born 1946-1960, after World War II
Grew up during the 1950’s, 60’s and 70’s
Entered the workforce when unemployment was
high - late 60’s to early 80’s
They remember starting at the bottom and
working their way up
They are today’s ageing workforce
Through the Ages, Business Review Week, Dr Roslyn Sayers 2008

51. GENERATION X
Baby Boomers Generation X
Generation
Generation Y
Net
Born 1961-1980
Grew up during the 1970’s and 80’s, entering the workforce in the 80’s and 90’s
Were influenced by increase in number of divorces, single-parent and dual income
situations
Generally well-educated with majority having had a tertiary education
Highly influenced by the 90’s technology boom with the increasing popularity of the PC
and Internet.
Stay loyal to themselves only and have a tendency to change jobs frequently, with many
involved in starting their own businesses
Today they are faced with the demands of managing work and family commitments
Through the Ages, Business Review Week, Dr Roslyn Sayers 2008

52. GENERATION Y
Baby Boomers Generation X
Generation
Generation Y
Net
Born in 1981-2001
Grew up during the 1980’s and 90’s and entered the workforce
from the 90’s up to the current day
Are generally either working or studying at school or university
Influenced by technology and are highly impatient, expecting
everything to be instantaneous
Are characterised for holding several jobs at one time and
consider holding a job for more than 2 years to be a long time
Generation Y is aware of globalisation and is concerned with
global issues such as climate change and sustainability
Through the Ages, Business Review Week, Dr Roslyn Sayers 2008

53. NERATION NET Baby Boomers Generation X
Generation
Generation Y
Net
Born 1995 and beyond
Are growing up in the 1990’s and 2000’s
Will enter the workforce from around 2010-2020
Have grown up with technology such as mobile
phones, internet
They expect everything to be instantaneous
They generally have an extremely short
concentration span

54. GENERATION
NET Baby Boomers Generation X
Generation
Generation Y
Net
Before they turn 25 the Net Generation will have:
Spent 10,000 hours
gaming
Sent 200,000 emails and
Instant Messages

55. GENERATION C
The GENERATION C phenomenon captures the an avalanche of consumer generated content that is building on the Web, adding
tera-peta bytes of new text, images, audio and video on an ongoing basis. The two main drivers fuelling this trend?
(1) The creative urges each consumer undeniably possesses. We're all artists, but until now we neither had the guts nor the
means to go all out.
(2) The manufacturers of content-creating tools, who relentlessly push us to unleash that creativity, using -- of course -- their ever
cheaper, ever more powerful gadgets and gizmos. Instead of asking consumers to watch, to listen, to play, to passively consume,
the race is on to get them to create, to produce, and to participate.
More than just age based segmentation, a behavioural segmentation like Generation C is sometimes useful. Also look to the
Technographic profiling available on the Forrester research site to see how your audience might be using technology.
http://www.trendwatching.com/trends/GENERATION_C.htm

56. 05: REC OGNISING YOUR CUSTOMERS
WHY YOU NEED IT OUR EXAMPLE:
AND HOW TO USE IT
DIMENSION PRIMARY
One of the biggest mistakes that businesses
make is trying to speak to too many people. Naming them Ambitious Owner/Operators.
The tighter you define your customer
audience the more relevant you can be They own their own business and have big plans for the future.
Describing them
to that audience, with both your selling They need their marketing skills to match their ambition.
messages and your advertising spend working
together. Demographics 70% male, 30% female 30 - 50 y/o.
Ambitious, hard working, looking to “make it”.
It means more efficient and effective
Take pride in their business. See the potential power
marketing; and getting higher value from each What do they think? of marketing. Desire commercial gain. It’s time for a step
customer. change!
Investing in business growth. Spending (or willing to spend)
What do they do?
on marketing and communication each year.
COMMENTARY
They want confidence that there will be a return on their
Don’t worry if this one audience does not
What’s important to them investment. In the past some of them have been burned by
cover all your customers. Advertising 'spillage' when buying? products or services that don’t leave them with clear actions.
means if you target a tighter audience your They look for credibility, experience and practical advice.
message will still ‘spill’ over to the other
people who might buy from you. However, Chamber of Commerce meetings, CEO networks eg. The
Where to find them? Executive Connection. They know other business owners, so
if you fail to recognise your best customers
referrals are important.
and start off too broad you might miss
your best prospects completely. How few do you really Given the recycle rate and business growth cycle, we need
www.surveymonkey.com
need to grow? How many about 30 new clients per year. This complements our existing
If you define your audience too broadly, it
will not help you prioritise the things you
of them are there? base of customers. RESOURCES & www.mediasmart.com.au/go/
audience-targeting
need to do to contact them. Conversely, if How often do they buy?
Maximum of once per year, but often once every couple of REFERENCES www.whatismarketfind.com.au
you define them too narrowly there might years for Coached Marketing Workshops. Ongoing project
How much do they spend? www.abs.gov.au
work (campaigns) 2-3 times per year.
be too few people to allow you to achieve your
business goals.
12

57. DIMENSION DESCRIPTION PRIMARY SECONDARY
A handle that helps you identify and talk about them
Naming them
eg. young aspirational females.
Think about their age, gender, wealth, education level
Describing them
and where they live.
What are their attitudes and beliefs? This might be in
What do they think? relation to your product, the category you’re in or just to life
in general.
What activities do they undertake? This might be their
What do they do? typical job, their routines or hobbies and general
recreational activities.
What sorts of things do they look for when purchasing?
What’s important to them when buying? How important is price and quality, and what other factors
do they look at?
If you wanted to talk to them how would you find them?
Where to find them? Where and when might they be open to information about
your product, service or category?
Given your growth objectives for the next year, how few
customers do you really need to talk to? It’s hard to
convince people to buy, so you want to focus on the
How few do you really need to grow? people you really need for growth and talk to them many
times. It’s generally a trade-off between numbers of people
contacted vs. number of times contacted per person.
What’s more important?
Are they heavy users? How often do they buy? How much
What's their customer life-time value? do they spend? How many years will they be shopping in
your category?
Other discriminators:
01 YOUR MISSION 02 WHERE TO STEP UP 03 COMPETITIVE
ENVIRONMENT 04 CUSTOMER
INTERROGATION 05 RECOGNISING
YOUR CUSTOMERS 06 VALUE
STATEMENTS